PCIT Vs Ram Das Maheshwai (Rajasthan High Court)
The Rajasthan High Court has delivered a significant ruling clarifying that once an assessee is granted immunity under the Direct Tax Dispute Resolution Scheme, 2016 (DTDRS), the Revenue cannot reopen or revise penalty proceedings by invoking Section 263 of the Income-tax Act, 1961, even on the ground that penalty was imposed under an incorrect provision. The judgment underscores the principle that amnesty schemes are intended to bring finality and quietus to tax disputes and that statutory immunity cannot be diluted through audit objections or revisional proceedings.
Factual Matrix
A search was conducted on the Nuwal Group, Jaipur, on 18 July 2012, of which the assessee was a member. Pursuant to the search, the assessee filed a return declaring income of ₹15.04 crore. The assessment was completed on 13 March 2015, and penalty proceedings were initiated under Section 271AAB, culminating in a penalty order dated 20 August 2015.
While the assessee’s appeal against the penalty was pending before the Commissioner (Appeals), the assessee opted for the Direct Tax Dispute Resolution Scheme, 2016 and was issued a certificate dated 9 November 2016 granting immunity from penalty and prosecution. Consequent thereto, the appeal was withdrawn.
